U.S. stocks ended Wednesday's session in positive territory, boosted by the latest earnings release from blue chip bellwether Alcoa (AA). In the after hours session Tuesday, the company said it swung to a Q4 profit, posting earnings in line with expectations, on better-than-anticipated sales. Alcoa also forecast that global aluminum demand will rise 7% in 2013, versus 6% in 2012.
The Dow Jones Industrial Average rose 61.66 points to 13390.51, its first gain in three sessions. The Standard & Poor's 500 picked up 3.87 points to close at 1461.02. The Nasdaq Composite Index gained 14 points, closing at 3105.81.
AIG's Decision
In company news, American International Group Inc. (AIG) said it will not join a lawsuit against the U.S. government, according to a statement. The lawsuit, brought on by the company's former CEO Hank Greenberg alleges that the terms in the bailout, which the company received from the U.S. government, were unfair. AIG's Board of Directors decided against the suit after a meeting.
With little economic data on tap, traders believe that the majority of the market's momentum will be dictated by corporate earnings, which are just starting to trickle in. Next week ushers in more earnings reports with market-moving potential.
In commodities, crude oil slipped $0.05 to settle at $93.10 a barrel after the U.S. Department of Energy announced that U.S. crude inventories rose by less than analysts' were expecting. The latest data showed crude oil stockpiles rose by 1.3 million barrels last week to 361.3 million barrels, compared to the 2.2-million-barrel increase analysts had, on average, forecast. After hours Tuesday, The American Petroleum Institute reported a 2.4-million-barrel increase.
Gold futures ended down 0.43% at $1,655.50 an ounce on the COMEX Wednesday as investors grew more interested in investing in equities and the U.S. dollar, at the expense of safe-haven gold.
Here's Where The Markets Stood At Day's End
- Dow Jones Industrial Average up 61.66 (+0.46%) to 13,390.51
- S&P 500 up 3.87 (+0.27%) to 1,461.02
- Nasdaq Composite Index up 14 (+0.45%) to 3,105.81
- Nikkei 225 Index up 0.68%
- Hang Seng Index up 0.46%
- Shanghai China Composite Index down 0.05%
- FTSE 100 Index up 0.75%
- DAX up 0.35%
- CAC 40 up 0.25%
- (+) GTXI, Shares move higher following the company's after hours report that its drug, enobosarm (GTx-024), which is indicated for the prevention and treatment of muscle wasting in patients with non-small cell lung cancer has been designated by the U.S. Food and Drug Administration (FDA) as a Fast Track development program.
- (+) NUVA, Shares rise following the company's report that it expects full year 2012 revenue of about $619 mln, vs. previously issued guidance of $601 to $606 mln. The analyst consensus is $604 mln, according to Capital IQ. For 2013, the company expects revenue of about $655 mln. Analysts expect $637 mln.
- (+) ROSG, Former high-flyer's stock is on the move after the company announced the publication of data from a study assessing the differences between cancer of unknown primary (CUP) and metastatic solid tumors of known primary metastases (KPM) by profiling microRNA expression.
- (-) MG, Stock sinks on a downgrade to Equal Weight from Overweight at Stephens after earnings disappoint.
- (-) PLOW, Shares drop after company provided an update to its guidance for Q4 and FY12. It expects FY12 revenues of $140 mln, down from the prior revenue guidance of $160 mln - $190 mln. This compares to the Capital IQ consensus estimate of $163.91 mln.
- (-) CALL, On Tuesday the company announced it has filed a joint stipulation and motion for the dismissal of a patent infringement suit that CALL filed in April 2012 against netTALK and its DUO VoIP telephone services product line.